Redundancy occurs when a job role becomes unnecessary because of organizational changes such as mergers, automation, or cost-cutting. It is not related to employee misconduct or performance issues. Employers typically follow legal procedures and may provide severance pay during redundancy.
Poaching in HRM is the practice of recruiting skilled employees from competing organizations. Companies often target high-performing professionals to strengthen their workforce. While legal in many cases, it may raise ethical concerns and impact industry relationships.
PF stands for Provident Fund. It is a long-term retirement savings scheme in which both the employer and employee contribute a portion of the employee’s salary. The accumulated amount, along with interest, is paid to the employee at retirement or under specific conditions.
Perquisites, often called “perks,” are extra benefits given to employees in addition to their regular salary. These may include housing, company car, medical insurance, or other non-cash advantages. Perquisites enhance overall compensation and improve employee satisfaction.
KSA in HR refers to the Knowledge, Skills, and Abilities required for a specific job role. Knowledge covers theoretical understanding, skills relate to practical capabilities, and abilities reflect personal competencies. Employers use KSAs to evaluate candidates and ensure the right job fit.
Payroll accounting entries are journal entries that record salary expenses and related deductions in the accounting books. They include wages payable, tax deductions, and employer contributions like provident fund. Proper payroll entries ensure accurate financial reporting and compliance.
A pay band is a structured salary range set for specific job grades or levels within an organization. It includes a minimum, midpoint, and maximum pay limit. Pay bands help ensure fair compensation and maintain internal salary consistency.
A paid day is any day for which an employee is entitled to receive wages. It may include regular working days, approved paid leave, or public holidays. Paid days are counted when calculating salary, benefits, and attendance records.
Overtime in cost accounting means additional wages paid to employees for working beyond regular hours. These extra costs are recorded separately to determine their impact on production expenses. Proper treatment of overtime helps in accurate cost calculation and pricing decisions.
Organizational decentralization refers to distributing decision-making power to lower or middle levels of management. Instead of central authority controlling all decisions, managers and teams are given more autonomy. This approach improves flexibility, faster decision-making, and employee involvement.
An organization tree is a graphical representation of a company’s structure. It displays reporting relationships, job roles, and departmental hierarchy. This chart helps employees understand authority levels and communication flow within the organization.
A one on one session is a scheduled meeting between a manager and an employee. It provides an opportunity to discuss performance, challenges, goals, and professional growth. Regular one on one sessions help build trust, improve communication, and enhance employee engagement.
The objectives of an HR audit are to review and assess the effectiveness of HR policies, procedures, and practices. It ensures compliance with labor laws and organizational standards. An HR audit also identifies gaps and recommends improvements for better performance and strategic alignment.
A muster roll is a document or register that records employee attendance and work details. It includes information such as employee names, days worked, and wages payable. Organizations use muster rolls to maintain accurate payroll and comply with labor regulations.
The Minimum Wages Act, 1948 is a labor law that fixes the minimum wage employers must pay workers in certain sectors. It aims to prevent exploitation and ensure fair compensation. Governments revise minimum wage rates periodically based on economic conditions.
A lateral move is when an employee shifts to another position within the organization at the same job level. It usually does not involve a promotion or pay raise. Lateral moves help employees gain new skills and broaden their experience.
A labour union is an association of employees formed to safeguard their rights and interests. It represents workers in negotiations with employers regarding wages, benefits, and working conditions. Labour unions play a key role in collective bargaining and workplace dispute resolution.
A Key Result Area (KRA) outlines the critical tasks and objectives linked to an employee’s job role. It clarifies expectations and performance priorities. Organizations use KRAs to evaluate performance and align individual contributions with business goals.
Intangible rewards are non-financial forms of recognition given to employees for their contributions. Examples include verbal appreciation, public acknowledgment, flexible work options, or career advancement opportunities. These rewards boost morale, engagement, and long-term job satisfaction.
An inpatriate is a professional who moves from an overseas branch of a company to its headquarters or home office. This transfer helps share global knowledge and align international operations. Inpatriates often bring diverse perspectives and cross-cultural expertise to the organization.